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200201096
<br />UNIFORM COVENANTS. Borrower and Lander covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and
<br />interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />1 Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on
<br />the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelfth of. (a) yearly taxes
<br />and assessments which may attain priority over this Security Instrument; (b) yearly leasehold paymants or ground rems on the Property,
<br />if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow
<br />items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future waow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or stale agency
<br />(including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charge for
<br />holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds
<br />mid applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing drat interest shall be paid on the
<br />Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any
<br />interest or earnings oo the Funds. Lender shall give to Borrows, without charge, an annual accounting of the Funds showing credits
<br />and debits to the Funds and the purpose for which each debit to the Funds was made. The Foods are pledged as additional security for
<br />the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prim to the due dates of
<br />the escrow items, shall exceed the amount required to pay the escrow items when due, the exrev shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Foods held by Lender is not
<br />sufficient to pay the escrow items when due, Borowar shall pay to Lender any an ount necessary to make up the deficiency in one or
<br />more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held
<br />by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately prim to the
<br />sale of the Property or its acquisition by Lender, any Foods held by Lander at the time of application as a credit against the sums seemed
<br />by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and
<br />2 shall be applied: first, to late charges due under the Note; second to Prepayment charges due under the Note; third, to amounts
<br />payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fince and impositions attributable to the Property which
<br />may attain priority, over this Security Instrument, and leasehold payments m ground rents, if any. Borrower shall pay these obligations
<br />in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay than on time directly to the person owed
<br />payment. Borrower shall promptly furnish to Lander all notices of amounts to be paid under this paragraph. If Borrower makes these
<br />payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any list which has priority over this Samrity Instrarnant unless Borrower: (a) .agrees in
<br />writing to the payment of the obligation seemed by the lien in a manner acceptable to Lander; (b) contests in goad faith the lien by, or
<br />defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the
<br />lien or forfeiture of any part of the Property; or (c) accures from the holder of the lien an agreement satisfactory to Lender subordinating
<br />the lien to this Security Instrument. If Lender determines that any part of the Property is subject in a lien which may attain priority ova
<br />this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien m take one m more of
<br />the actions set forth above within 10 days of the giving of notice.
<br />5, Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
<br />loss by fire, hazards included within the term "extended coverage" and any other hazards for which tender requires insurance. This
<br />insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance
<br />shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender mid shall include a standard mortgage clause. Lender shall
<br />have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br />premiums and renewal nmicea. ht the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
<br />make proof of lass if no made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoratim m repair of the
<br />Property damaged, if the restmation or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is
<br />not economically feasible or Lender's security would he lammed, the insurance proceeds shall be applied to the sums secured by this
<br />Security Instrument, whether or net then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer
<br />within 30 days a notice from Lender that the insurance orris has od'ered to settle a claim, than Lender may collect the insurance
<br />proceeds. Lender may use the proceeds to repair m regime the Property m to pay sums secured by this Security Instrument, whether or
<br />not there due. The 30 -day period will begin what the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone
<br />the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If under paragraph 19 the
<br />Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prim to
<br />the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prim to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the
<br />Prop", allow the Property to deteriorate or commit waste. If this Security Instrument ism a leasehold, Borrower shall comply with
<br />the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender
<br />agrees to the merger in writing.
<br />7. Protection of Lender's flights in the Property; Mortgage Insurance. if Borrower fails to perform the covenants and agreements
<br />contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender 's rights in the Property (such as
<br />a proceeding in bankruptcy, probate, for condemnation o to enforce laws or regulatitns), then Lender may, do and pay fm whatever is
<br />necessary to protect the value of the Property and Lander's rights in the Property. Lender's actions may include paying any stuns seemed
<br />by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the
<br />Property to make repairs. Although Lends may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br />Instrument Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
<br />disburseo a it at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting Payment.
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